Around a third of pension savers plan to release equity from their homes to help fund their retirement, according to Canada Life.

The equity release provider found of those with higher value pensions of more than £200,000, 42% were likely to release equity compared to 27% among those with pensions valued at less than £200,000.

Over-55s on higher incomes of £50,000 or more were increasing likely to release equity as part of their retirement planning compared to those on lower incomes. Some 35% of those on higher incomes expected to do so, compared to 22% of those earning less than £20,000 and 33% of those earning between £20,000 and £50,000.

The research was based on 506 adults in the UK aged 55 and over with a defined contribution pension, who are not yet taking an income.

Alice Watson, head of marketing for insurance at Canada Life, said: “Retirement journeys are becoming more complex. Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer. These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.

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 “Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably. However equity release is a lifelong financial decision so it is essential that people use a reliable release equity calculator, seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”